Our definition of a Managing General Agent
An MGA is an agency whose primary function and focus is the provision of
underwriting services and whose primary fiduciary duty is to its Insurer
principal.
This
method of operating is particularly concentrated at the SME end of the market,
a potentially vulnerable class of customers, and includes compulsory classes
like motor liability and employers’ liability. Some of the most important professional firms
in the country buy their professional indemnity insurance through MGAs. The regulatory framework categorises MGAs as
“wholesale intermediaries”. This can
cause confusion.
The continuum below shows the
various trade associations which currently exist in our business environment. It demonstrates the need for a trade
association that has a specific focus on MGAs. This need is essential because the other trade
associations are polarised and are focussed solely on representing the
interests of either a brokerage or a risk carrier.